I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis. Companies can only raise their dividends regularly and sustainably if they grow earnings sufficiently.
I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:
- Dividend Yield ≥ 1.0%
- Market cap ≥ $1 billion
- No stocks that are being acquired
- No Over-The-Counter or Pink Sheet stocks
In the past week, 23 companies that declared dividend increases passed these screens.
The following table provides a summary of dividend increases from stocks in the Financials and Real Estate sectors. Part 2 of this article will cover increases from stocks in the remaining sectors.
The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).
Summary of Dividend Increases: October 22-26, 2018
TD Ameritrade Holding ()
Operating as a subsidiary of The Toronto-Dominion Bank (NYSE:), AMTD provides securities brokerage services and related technology-based financial services to retail investors, traders and independent registered investment advisors in the United States. The company provides its services through the Internet and investment advisors. AMTD was founded in 1971 and is headquartered in Omaha, Nebraska.
Recently, AMTD increased its quarterly dividend to 30¢ per share, an increase of 42.86% over the prior dividend of 21¢ per share.The dividend is payable on November 20 to shareholders of record on November 6. AMTD will trade ex-dividend on November 5.
Founded in 1926 and headquartered in Short Hills, New Jersey, ISBC is the holding company for Investors Bank. It provides community banking products and services to individuals and businesses primarily in New Jersey and New York. ISBC offers traditional deposit products and a portfolio of loan products.
Recently, the board of directors of ISBC declared a quarterly dividend of 11¢ per share. The new dividend represents an increase of 22.22%.The dividend is payable on November 23 to shareholders of record on November 9. The ex-dividend date is November 8.
Prosperity Bancshares ()
PB operates as a financial holding company for the Prosperity Bank. Formed in 1983 and headquartered in Houston, Texas, PB provides a range of financial products and services to its customers, including traditional loan and deposit products, trust services, brokerage services, mortgage lending, and credit card operations.
Recently, the board of directors of PB declared a quarterly dividend of 41¢ per share. The new dividend represents an increase of 13.89%.The stock will trade ex-dividend on December 13, and shareholders can expect to receive the new dividend on January 2.
Associated Banc-Corp ()
Founded in 1861 and headquartered in Green Bay, Wisconsin, ASB is a bank holding company that provides banking and non-banking products and services to individuals and businesses primarily in Wisconsin, Illinois, and Minnesota. ASB operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services.
On October 23, the board of directors declared a quarterly dividend of 17¢ per share. The new dividend represents an increase of 13.33%.The first payment will be on December 17 to shareholders of record on December 3. The ex-dividend date is November 30.
Heritage Financial ()
HFWA is a bank holding company incorporated in the State of Washington in August 1997. Its wholly owned subsidiary, Heritage Bank, is a full-service commercial bank providing financial solutions to small- and medium-sized business in Washington and Oregon. Effective 1 May 2014, HFWA completed a merger with Washington Banking Company.
On October 25, the board of directors approved an increase to the regular quarterly dividend from 15¢ per share to 17¢ per share, an increase of 13.33%.The dividend is payable on November 21 to shareholders of record on November 7.
NBTB is a financial holding company that provides commercial banking, retail banking, and wealth management services in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance. NBT was founded in 1856 and is headquartered in Norwich, New York.
NBTB will pay a quarterly dividend of 26¢ per share, an increase of 4.00% over the previous quarterly dividend.The dividend is payable on December 14 to shareholders of record on November 30. The ex-dividend date is November 29.
UMBF is a diversified financial holding company that supplies banking services, institutional investment management, asset servicing, and payment solutions primarily in the United States. The company operates through three segments: Bank, Institutional Investment Management, and Asset Servicing. UMBF was founded in 1913 and is headquartered in Kansas City, Missouri.
The company’s board of directors approved an increase in the quarterly dividend of 3.45% to 30¢ per share.The stock will trade ex-dividend on December 7, and shareholders can expect to receive the new dividend on January 2.
South State Corporation operates as the bank holding company for South State Bank, which provides retail and commercial banking services, mortgage lending services, trust and wealth management, and consumer finance loans to customers in South Carolina, North Carolina, Georgia, and Virginia. SSB was founded in 1933 and is headquartered in Columbia, South Carolina.
Recently, SSB increased its quarterly dividend to 36¢ per share, an increase of 2.86% over the prior dividend of 35¢ per share.All shareholders of record on November 9 can expect the dividend to be paid on November 16.
Principal Financial Group ()
Based in Des Moines, Iowa, PFG is a leading provider of retirement services, insurance solutions, and asset management services. In addition, the company offers individual life and disability insurance, group life and health insurance, and residential mortgage loan origination and servicing products in the United States. PFG was founded in 1879.
The company’s board of directors approved an increase in the quarterly dividend of 1.89% to 54¢ per share.The dividend is payable on December 28 to shareholders of record on December 3.
GTY is a real estate investment trust. The firm invests in real estate markets of the United States, focusing on the ownership, leasing, and financing of convenience store and gasoline station properties. Getty Realty Corp. was founded in 1955 and is based in Jericho, New York.
The company declared a quarterly dividend of 35¢ per share, an increase of 9.38% over the prior quarterly dividend.GTY will trade ex-dividend on December 19. The dividend is payable on January 4, to shareholders of record on December 20.
IRM, a real estate investment trust, provides storage and information management services in North America, Europe, Latin America and the Asia Pacific. Its customer base includes commercial, legal, banking, healthcare, accounting, insurance, entertainment, and government organizations. IRM was founded in 1951 and is headquartered in Boston, Massachusetts.
The company increased its quarterly dividend by 4.00%, from 58.75¢ per share to 61.1¢ per share.The dividend is payable on January 3 to shareholders of record on December 17.
MAC is an independent real estate investment trust that invests in real estate markets in the United States. The company engages in acquisition, ownership, development, redevelopment, management, and leasing of regional and community shopping. MAC was founded in 1964 and is headquartered in Santa Monica, California.
The company announced a quarterly DIV increase of 1.35% to 75¢ per share.The new dividend is payable on December 3 to shareholders of record on November 9, with an ex-dividend date of November 8.
Please note that I’m not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
Below, I’m including charts from F.A.S.T. Graphs for three of this week’s dividend raisers, AMTD, PB, and PFG.
In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).
AMTD’s price line (black) is at the primary valuation line (orange) and below the stock’s normal P/E ratio (blue). The stock is trading at about fair value. An investment in AMTD in October 2009 would have returned 11.9% on an annualized basis (with dividends included).
PB’s price line is below the stock’s normal P/E ratio and below the primary valuation line. The stock is trading at a discount to fair value. An investment in PB in January 2009 would have returned 9.5% on an annualized basis (with dividends included).
PFG’s price line is below the primary valuation line and below the stock’s normal P/E ratio. The stock is trading at a discount to fair value. An investment in PFG in January 2009 would have returned 9.8% on an annualized basis (with dividends included).
Upcoming Ex-Dividend Dates
As a bonus, here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.
The table is sorted by Ticker, and as before, Next Div is annualized. Please note that Next Div links to the latest dividend declaration announcement. Also, note that the table covers only ex-dividend dates of stocks in the Financials and Real Estate sectors. See Part 2 of this article for ex-dividend dates of stocks in the remaining sectors.
Summary of Upcoming Ex-Dividend Dates: Dividend Increases: October 30-November 12, 2018
Boston Private Financial Holdings
National Retail Properties
Omega Healthcare Investors
People’s United Financial
Reinsurance Group of America
Tanger Factory Outlet Centers
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Disclosure:I am/we are long EPR, NNN, O, OHI, SKT.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.